SAIL to unveil Rs. 400 cr VRS; to cut 1500 jobs

The company's Board of Directors is likely to approve the VRS plan in its next meeting, which is scheduled towards the middle of next month, according to the business daily.

Steel Authority of India Ltd. (SAIL) will soon launch a ~INR 400-crore voluntary retirement scheme (VRS) after a gap of nearly 10 years, as it looks to reduce its workforce by 1,500 from the current level of 91,000, reports a financial newspaper.

The company's Board of Directors is likely to approve the VRS plan in its next meeting, which is scheduled towards the middle of next month, according to the business daily. 

The VRS would be launched immediately after the Board’s approval across its five integrated steel plants and non-plant set-ups, targeting both executive and non-executives, says the newspaper.

The VRS is likely to be offered to workers who are in the 46-50 years age bracket. SAIL is likely to keep both the deferred payment option as well as one-time payment option open for employees who would opt for VRS, reports the daily.

SAIL had a staff strength of 1.47 lakh in 2001.

Natural attrition reduces the company's employee strength by around 4,000-5,000 every year, a SAIL official has been quoted as saying.